Financing and Development Incentive Programs

Financing programs and development incentives for small and large businesses are vital tools for distressed urban neighborhoods. These programs have helped create new businesses, jobs, housing, education and healthcare opportunities for thousands of Americans. The City of Los Angeles offers various programs to assist private business, property owners and developers to be successful and in turn benefit low income communities, create jobs and provide goods and services in our communities.

FINANCING PROGRAMS

Small Business Loan Program

EWDD designed the Small Business Loan Program in order to provide financing to viable small businesses that private lenders cannot accommodate. Whether, your business is a Start-Up or an existing business that would like to expand, loan funds can be used for reasonable and eligible business operation costs, including, but not limited to, inventory, equipment, working capital and leaseholder improvements. The ultimate goal of the Small Business Loan Program is job creation and the borrower is required to create jobs in the City of Los Angeles.

Businesses must satisfy all the following eligibility criteria:

Annual revenue not to exceed $10 million

Create one permanent full-time equivalent job for every $35,000 in financial assistance received

Of the total jobs created, 51% of them need to be fulfilled or made available to low and moderate-income people

General financing terms:

Loan Amount: $50,000 - $500,000

Term/Amortization: 3-10 years

Minimum Owner Equity: 10%

Rate: 2.5% + 10 Year US Treasury Note Rate

Collateral and/or guaranty required

$250 Non-refundable Application Fee

2.6% Loan Fee - can be financed through the loan

For more information, contact Alex Lakshtanov at 213-744-9368 or This email address is being protected from spambots. You need JavaScript enabled to view it..

Major Projects Loan Program

The Major Projects Loan Program offers long term, fixed rate financing for large-scale real estate commercial development projects. Such projects could include industrial parks, hotels, office buildings, mixed-use projects, and large shopping centers. These projects must provide a HUD-specific public benefit - creating or retaining full-time equivalent jobs or goods and services to low and moderate income households.

In addition to meeting HUD requirements, projects to be considered must meet one of the following criteria:

Revenue Generation

Investment in Targeted Communities

WorkSource Hiring Commitment

Loan Amounts can range from $500,000 to $30,000,000. The interest rate can range from HUD Cost of Funds + 2.5-4.5% for rehabilitation/new construction and HUD Cost of Funds +4-6% for acquisition. The maximum city participation is 20% of total project value for rehabilitation/new construction loans and 25% for acquisition loans. Loan terms are no longer than 20 years for rehabilitation/construction and 5 years on acquisition loans. Eligible activities are property acquisition, equipment purchase, new construction and related soft costs. Loans may be used with private and public funds.

Applicants must show that traditional bank financing is not available, or not available in the amounts needed, or at terms the company cannot afford to do the project. For questions and to apply, please contact Angelica Nuñez at 213-744-9377 or This email address is being protected from spambots. You need JavaScript enabled to view it..

DEVELOPMENT INCENTIVES & PROGRAMS

EB-5 Visa Program for Targeted Employment Areas

The EB-5 program provides visas to qualified individuals seeking permanent resident status based upon their engagement in new commercial enterprises. Most importantly, EB-5 requires job creation in the highest unemployment areas by census tract.

Under federal law, 10,000 immigrant visas are available per year to qualified individuals seeking permanent resident status on the basis of their engagement in new commercial enterprises

Individual must invest at least $1,000,000 into a new commercial enterprise that they have established

An applicant seeking EB-5 Visa must demonstrate that the investment will benefit the United States Economy and create full time employment for at least 10 qualified individuals, or maintain existing employees in a troubled business

If the new commercial enterprise is made in a Targeted Employment Area (TEA), the required investment is decreased to $500,000

The TEA is either a "high unemployment area" or the area has experienced an unemployment rate of at least 150% of the national rate

The City of Los Angeles requests the following information be submitted for the EB-5 approval letter:

Amount of Capital Invested

Jobs Created (full and part time)

Time Line

Renderings

City staff will conduct a site inspection of proposed development site. For more information, contact Joseph Rouzan at 213-978-8331 or at This email address is being protected from spambots. You need JavaScript enabled to view it..

Additional information about the EB-5 Program for businesses, including current census tract data, maps and interactive location tools, are available on the California Go-Biz website at www.Business.CA.Gov or on the U.S. Citizenship and Immigration Services website at www.USCIS.Gov.

Federal Empowerment Zone Business Tax Incentives

The Federal Empowerment Zone Business Tax Incentives have been extended through December 2016 (S.1946). They include, but are not limited to:

Tax deduction for state and local general sales taxes

Tax credits for research expenditures

Work Opportunity Tax Credits (WOTC allows for a credit for the hiring of qualified long term unemployed)

Additional information can be found on the U.S. Congressional Website at Congress.gov. A Los Angeles Urban Renewal Community map along with other development tools can be found on the HUD Website, HUD.gov, under the Community Planning and Development Program Office, Economic Development.

Green Business & Incentives

From developing a Clean Air Action Plan to creating L.A.’s first-ever Sustainable City pLAn, Los Angeles is cultivating a booming CleanTech Industry. L.A. is dedicated to promoting clean technology sector through innovations like the LA Cleantech Business Incubator and PortTech, a non-profit center dedicated to creating sustainable businesses for ports and the goods movement industry.

City of Los Angeles Restaurant & Hospitality Express Program

The Restaurant and Hospitality Express Program (RHEP), offered by the Department of Building and Safety, facilitates the approval process for food service establishments, such as restaurants and bars. The RHEP acts to streamline approvals, provide assistance to restaurateurs, their design and construction teams, and enhance coordination in permitting and regulations. The goal is to make the permitting and inspection process more efficient, enabling new Food Service Establishments to open on time and on budget.

Film Industry Incentives

Many states and countries are competing to lure this industry and they are providing lucrative incentives. Los Angeles is serious about attracting and retaining the good jobs Hollywood brings to this region, therefore, the City Council and Mayor have approved the following entertainment industry incentives, all designed to retain and attract film, television, and commercial productions in the City.

EWDD no longer has oversight of the Film L.A. contract. If you need information relating to the Film L.A. contract, please contact Eva Bitar in the Public Works Department at This email address is being protected from spambots. You need JavaScript enabled to view it. or by calling 213-978-0258 or 213-344-8498.